Bitcoin is a digital cryptocurrency that offers a non-centralized way to obtain, transfer and store money. Currently, Bitcoin (also known as BTC) is used by many companies on the Internet to receive and make payments, including Forex brokers. This is because BTC offers the clients of these companies a fairly convenient option to deposit and withdraw funds with almost no restrictions. Thanks to the tremendous success that Bitcoin has had since its creation, other electronic cryptocurrencies have appeared, although its diffusion has been less important such as Litecoin, Ethereum and Ripple.
Just like any other currency, Bitcoin can be used as a counterparty in one currency pair (just like in traditional currency pairs), allowing traders to speculate regarding the value or price of Bitcoin relative to other currencies, such as for example, the United States dollar (BTC/USD) and the euro (BTC/EUR). The symbology used for Bitcoin pairs is the same as that used in traditional currency pairs, with Bitcoin being the base currency with BTC as a symbol. For this reason, Forex brokers have added cryptocurrencies to their offering of trading instruments.
In most cases, cryptocurrency brokers that offer Bitcoin and other digital currencies for trading purposes use CFDs (Contracts For Difference) as a trading vehicle, that is, as derivatives that allow traders to speculate on the price of cryptocurrency currency pairs ( but without actually owning the instrument), such as the aforementioned BTC/USD. In the case of CFDs, the trader never buys or sells cryptocurrencies, what he does is speculated based on the price of these assets using CFDs as a means of trading. However, in other cases, the broker offers a true market to buy and sell cryptocurrencies directly using dollars, euros, pounds sterling, and other currencies, and not through derivatives. This is the case of FXOpen.
Directory of the Main Cryptocurrency Brokers
| Broker | Regulation | Broker Type | Trading Instruments | Trading conditions | Minimum Deposit | Broker Review |
|---|---|---|---|---|---|---|
XM | CySEC | Market Maker/STP/NDD | -Forex -Commodities -CFD | Spreads: From 0.2 pips Leverage: 1:888 | $5 | Review |
ICMarkets | ASIC | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.1 pips Leverage: 1:500 | $200 | Review |
HotForex | - | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.2 pips Leverage: 1:1000 | $5 | Review |
XTB | FCA | NDD/STP | -Forex -Commodities -CFD | Spreads: From 0.2 pips Leverage: 1:200 | $250 | Review |
RoboForex | CySEC | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:1000 | $10 | Review |
FPMarkets | ASIC | ECN/STP | -Forex -Commodities -CFD -Stocks | Spreads: From 0.0 pips Leverage: 1:500 | $200 | Review |
Tickmill | FCA | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.6 pips Leverage: 1:500 | $25 | Review |
Valutrades | FCA | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.0 pips Leverage: 1:500 | $50 | Review |
Alpari | - | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.0 pips Leverage: 1:1000 | $10 | Review |
ThinkMarkets | ASIC and FCA | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:500 | $200 | Review |
Axi | ASIC and FCA | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.0 pips Leverage: 1:500 | $10 | Review |
Pepperstone | ASIC | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.1 pips Leverage: 1:500 | $200 | Review |
Avatrade | Bank of Ireland, ASIC and other | Market Maker | -Forex -Commodities -CFD | Spreads: From 1.0 pips Leverage: 1:500 | $100 | Review |
ForexTime | CySEC IFSC | Market Maker/ECN | -Forex -Commodities -CFD | Spreads: From 0.1 pips Leverage: 1:1000 | $5 | Review |
BlackBull Markets | FSRP | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.2 pips Leverage: 1:500 | $200 | Review |
EXNess | CySEC | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:1000 | $1 | Review |
Admiral Markets | CySEC ASIC FCA | ECN/STP/Market Maker | CFD on: -Forex -Commodities -Stocks -Indices -Crypto | Spreads: Variable from 0.0 pips Leverage: 1:500 | $1 | Review |
FXPrimus | CySEC | NDD/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:500 | $200 | Review |
FXOpen | FCA ASIC | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:500 | $1 | Review |
HYCM | FCA CySEC | Market Maker | -Forex -Commodities -CFD | Spreads: From 2.0 pips Leverage: 1:200 | $250 | Review |
FBS | CySEC IFSC | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:1000 | $1 | Review |
EasyMarkets | CySEC ASIC | Market Maker | -Forex -Commodities -CFD -Forex options | Spreads: From 1.0 pips Leverage: 1:400 | $250 | Review |
Forex4you | - | NDD/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:500 | $10 | Review |
Alvexo | CySEC | Market Maker | -Forex -Commodities -CFD | Spreads: From 1.0 pips Leverage: 1:200 | $500 | Review |
Markets.com | CySEC | Market Maker | -Forex -Commodities -CFD | Spreads: From 2.0 pips Leverage: 1:200 | $100 | Review |
Cryptocurrency Exchanges – An Alternative to Directly Trade Digital Currencies
With the exception of FXOpen, the companies shown in this directory offer CFDs based on cryptocurrencies, that is, derivatives that serve as vehicles to speculate on the price of the most important cryptocurrencies. Since CFDs are derivatives, traders do not come into possession of the underlying asset, i.e. cryptocurrency, in their buy trades, nor do they sell the cryptocurrency in their sell trades. So when the position is closed and settled, the trader receives the profit or loss (the difference between the opening price and the closing price of the trade) in the form of traditional fiat currency such as the dollar or the euro. In other words, in these brokers, the trader speculates on the value of the cryptocurrencies but without directly dealing with these assets.
However, if the trader wants to buy, sell, and exchange cryptocurrencies directly, that is, trade with these currencies in the market, he must use the services of an online cryptocurrency exchange. These online sites allow their clients to trade directly with cryptocurrencies, although the way they work and operate can vary among themselves since there are several types. However, in this case, the trader must consider that when buying or exchanging digital currencies in an exchange, he will have to face a series of additional complications, since he will not only have to face the volatility that characterizes cryptocurrencies (which also happens of course in CFD trading), he will also have to deal with storing coins, security and above all the difficulty of being able to send and convert those assets into money that can be used in the real world.
If you have an interest in making cryptocurrency buying and selling transactions in the markets for these digital assets, you can try the services of the following recommended exchanges: